Payment of inheritance tax and estate duties

Inheritance tax is the tax you have to pay as an heir when you inherit an estate. It is calculated on the basis of the net value of what the deceased leaves you after deduction of the debt. Exactly how much you have to pay depends on the region where the deceased lived. If that was in Flanders, then the Flemish Tax Administration is responsible. The Brussels Capital Region and the Walloon Region themselves choose how much you have to pay, although the FPS Finance is still responsible for the execution for the time being.
  • Inheritance tax is calculated on the basis of the declaration of estate. The exact rates vary by region, but in every region:

    • they increase as you inherit more,
    • they depend on how close you were related to the deceased.
  • Rates in the Walloon Region

    • What are the rates between spouses, legal cohabitants and lineal relatives (between grandparents, parents, children, grandchildren, ...)?

      The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 12500 3 /
      12500.01 to 25000 4 375
      25000.01 to 50000 5 875
      50000.01 to 100000 7 2,125
      100000.01 to 150000 10 5,625
      150000.01 to 200000 14 10,625
      200000.01 to 250000 18 17,625
      250000.01 to 500000 24 26,625
      500,000.01 and more 30 86,625

      Under certain circumstances, these rates also apply to adopted children.

    • What are the rates between brothers and sisters?

      The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 12500 20 /
      12500.01 to 25000 25 2,500
      25000.01 to 75000 35 5,625
      75000.01 to 175000 50 23,125
      175,000.01 and more 65 73,125
    • What are the rates between uncles, aunts, nephews and nieces?

      The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 12500 25 /
      12500.01 to 25000 30 3,125
      25000.01 to 75000 40 6,875
      75000.01 to 175000 55 26,875
      175,000.01 and more 70 81,875
    • What are the rates between other persons?

      The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 12500 30 /
      12500.01 to 25000 35 3,750
      25000.01 to 75000 60 8,125
      75000.01 to 175000 80 38,125
      175,000.01 and more 80 118,125
  • Reductions and exemptions in the Walloon region

    The reductions and exemptions apply both to the estate of residents of Belgium (inheritance tax) and to the estate of those who lived abroad (duty on the transfer of property mortis causa).

    • Spouses and legally cohabiting partners: exemption for the family home

      The surviving spouse or legal cohabitant is granted a full exemption on the net share of immovable property that served as the main residence of the deceased for at least five years on the date of death.

      That net share is excluded from the tax base.

      Conditions
      • These persons must be the surviving spouse or surviving legal cohabitant, regardless of the degree of consanguinity of the latter with the deceased.
      • The deceased can be a resident or a non-resident of the Kingdom.
      • The immovable property must be located in the Walloon region.
      • An extract from the population register or the register of foreign nationals will provide proof of the main residence, unless otherwise indicated.
      • This can be the last common residence of the spouses or legal cohabitants if they ceased to cohabit as a result of separation or force majeure or for compelling medical, family, social or professional reasons.
      Application

      The full exemption is usually granted automatically, but you must apply for it expressly in the declaration of estate if you ceased to cohabit as a result of separation or for compelling reasons. In that case, you must provide proof of the force majeure or compelling reasons.

    • Lineal heirs: reduced rate for the family home

      A reduced rate applies to the net share of lineal heirs in the family home.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 25000 1  /
      25000.01 to 50000 2 250
      50000.01 to 175000 5 750
      175000.01 to 250000 12 7,000
      250000.01 to 500000 24 16,000
      500,000.01 and more 30 76,000

      Application

      You must explicitly request the reduced rate in the declaration of estate.

    • Spouses, legal cohabitants and lineal relatives: partial exemption from inheritance tax

      Tax-free allowance

      The first 12,500 euros of the net share of spouses, legal cohabitants or lineal heirs in the estate is exempt from tax.

      If the net share is 125,000 euros or less, they receive an additional exemption of 12,500 euros in the second bracket, amounting to a total exemption of 25,000 euros.

      Additional tax-free allowance for children under the age of 21

      Children of the deceased person who are under the age of 21 receive an additional exemption of 2,500 euros for each full year remaining until they are 21.

      In addition to this, the spouse or legal cohabitant receives half of the additional exemption paid to all of the common children together.

      Example of the tax-free allowance for a child under the age of 21

      Dirk De Smet dies leaving his daughter Hilde as his heir. Hilde is 17 years and 6 months old.

      After deducting funeral costs and Dirk’s debts, the value of the estate is 150,000 euros.

      Hilde is entitled to the following exemptions:

      • a tax-free sum of 12,500 euros and
      • an additional tax-free sum of 2,500 euros x 3 (= full years until she is 21) = 7,500 euros.

      That is a total amount of 20,000 euros tax-free.

      The inheritance tax payable by Hilde is calculated as follows:

      • 20,000 euros is exempt
      • 5,000 euros at 4 % = 200 euros
      • 25,000 euros at 5 % = 1,250 euros
      • 50,000 euros at 7% = 3,500 euros
      • 50,000 euros at 10 % = 5,000 euros

      Therefore, the total amount is 9,950 euros.

    • Heirs with at least three children under the age of 21: inheritance tax reduction

      Heirs with at least three living children under the age of 21 at the time of the deceased person's death receive a 2 % reduction in inheritance tax for each of those children, up to a maximum of 62 euros per child.

      The deceased person's partner receives a 4 % reduction for each child under 21, up to a maximum of 124 euros per child.

    • Property that is included in the estate of another deceased person within a year: 50 % inheritance tax reduction

      If the inherited property is included in the estate of one or more other deceased persons within a year of the deceased person’s death, the inheritance tax due on it is halved.

      However, the amount of the reduction must not exceed the inheritance tax levied on the previous estate.

    • Testamentary gifts to authorities: inheritance tax exemptions and reductions

      There is an exemption from inheritance tax for legacies (testamentary gifts) to:

      • the Walloon Region
      • the French Community, the Brussels Capital Region, the Brussels Agglomeration; the Common, French and Flemish Community Commissions; the German-Speaking Community, the Flemish Region and the Flemish Community;
      • entities comparable to the above, that were established under, and are subject to, the laws of another Member State of the European Economic Area;
      • a Federal State and a Member State of the European Economic Area;
      • legal entities established by the above entities.

      There is a reduced rate of 5.5 % for legacies to:

      • the provinces;
      • the municipalities;
      • provincial and municipal public bodies;
      • inter-communal associations;
      • autonomous municipal companies;
      • legal entities of another Member State of the European Economic Area comparable to the entities listed above;
      • companies recognised by the ‘Société wallonne du Logement’ (Waalse Huisvestingsmaatschappij) [Walloon Housing Company];
      • the ‘Fonds du Logement des Familles nombreuses de Wallonie’ (Woningfonds van de Kroostrijke Gezinnen van Wallonië) [The Walloon Social Housing Fund];
      • the social entities referred to in Article 191 of the Walloon Housing Code, which are recognised by the Walloon Government as social housing agencies, social community networks or associations for the promotion of housing.

      There is a reduced rate of 7 % for legacies to:

      • national and international not-for-profit organisations;
      • friendly societies or national unions of friendly societies;
      • professional associations;
      • private foundations
      • public-interest foundations.
    • Property in Natura 2000 areas/forests: exemption from inheritance tax

      There is an exemption from inheritance tax for immovable property in Natura 2000 areas. These are valuable nature conservation areas which are listed in the Belgian Official Gazette.

      Under certain circumstances, the tax can be reduced for immovable property in an area that is eligible for inclusion in the Natura 2000 network and subject to the primary protection regime.

      Additional exemptions can also be granted for:

      Application

      You must apply for the exemption in the declaration of estate. You should contact your civil-law notary or the competent office of the FPS Finance to obtain specific information about the process.

    • Spouses, legal cohabitants and lineal heirs: exemption for death caused by an extraordinary act of violence

      There is an exemption from inheritance tax of 250,000 euros for death caused by an extraordinary act of violence.

      An extraordinary act of violence is defined as ‘any intentional act of violence committed by a single person or a group of persons, which caused a feeling of fear and insecurity among the general public on account both of the violence itself and the seriousness of its consequences, and of the attack on the physical and/or moral integrity of the members of the public present when the act was committed.’

      The following heirs are eligible:

      • spouses or legal cohabitants;
      • lineal heirs;
      • collateral heirs up to the second degree (and their blood relatives in the direct line of descent up to the first degree)
      Application

      Attach a certificate from the ‘Direction générale opérationnelle Fiscalité’ (Operationeel Directoraat-generaal Fiscaliteit) [Operational Directorate General for Tax] of the Walloon Administration, confirming that the deceased person died as a result of an extraordinary act of violence, to the declaration of estate.

      You can contact the Walloon Tax Administration for more information about the certificate.

    • Protected immovable property: exemption from inheritance tax for maintenance work

      Heirs who inherit the ownership or usufruct of protected monuments may obtain an inheritance tax exemption. An amount equivalent to the exemption must be invested in the monument.

      The following heirs are eligible:

      • spouses or legal cohabitants;
      • lineal heirs;
      • collateral heirs up to the third degree.
      Conditions
      • You must invest an amount equal to the inheritance tax exemption in maintenance, surveys and renovation of the protected monument within ten years of the date of the deceased person’s death.
      • Once you have completed the investments, you must obtain a certificate from the Walloon Government confirming that the amount of the investments was at least equal to the amount of the inheritance tax exemption.
      • All of the heirs must retain their right of ownership or usufruct over the monument until the certificate has been obtained. However, the exemption will still apply if the ownership or usufruct changes as a result of a death or a transfer between spouses, legal cohabitants, lineal relatives or collateral relatives up to the third degree.

      Important: if this condition is not met, all of the heirs who received the exemption must pay inheritance tax, unless this was a result of force majeure or for compelling administrative reasons.

      Application

      Apply for the exemption in the declaration of estate (it is not automatic).

      State the date and the decision by which the immovable property was protected and attach a copy of the decision.

      Attach a list of the investments required to the declaration. You can obtain the list from the Walloon Government (please note: the Walloon Government needs at least 45 days to provide the list).

    • Transfer of businesses: reduced inheritance tax rate (0 %)

      In some cases and under certain conditions, inheritance tax on the net share of a business can be reduced to 0 %, if the succession or the matrimonial property regime contains a right in rem resulting from the death.

      To obtain information about your specific situation, you should contact your civil-law notary or the competent office of the FPS Finance.

    • Undeveloped immovable property with a long-term lease or career-long lease: reduced rate applicable since 1 January 2021

      Inheritance tax on undeveloped immovable property in the Walloon Region with a long-term or career-long lease can be reduced under certain circumstances.

      Long-term lease

      The reduction is:

      • 55 % on the first 4 hectares;
      • 30 % on the remaining hectares.
      Career-long lease

      The reduction is:

      • 75 % on the first 4 hectares;
      • 50 % on the remaining hectares.

      The reduction for the long-term or career-long lease is 10 % lower if the lessee was over 35 years of age when the lease was entered into.

      The lease must be:

      • reported to the ‘Observatoire foncier’ (Grondwaarnemingscentrum) [Land Survey Centre] and
      • entered into by an official document in accordance with the rules governing leases in the Civil Code.
  • Rates in the Brussels Capital Region

    • What are the rates between spouses, cohabitants and lineal relatives (between grandparents, parents, children, grandchildren, ...)?

      The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 50000 3  /
      50000.01 to 100000 8 1,500
      100000.01 to 175000 9 5,500
      175000.01 to 250000 18 12,250
      250000.01 to 500000 24 25,750
      500,000.01 and more 30 85,750

      The rates also apply to stepchildren, stepparents and adopted children. However, they must be able to prove that they meet the necessary conditions.

      Stepchild and stepparent

      A stepchild is defined as:

      • the child of the deceased person’s spouse or legal cohabitant;
      • the child of a deceased person’s partner, on condition that the relationship between the partners was still extant at the time of death;
      • a person who is not a descendent of the deceased person but who, at the time of that person’s death, had lived in his or her household for a continuous period of at least one year and, during that time, had received the assistance and care that children normally receive from their parents primarily from one or more persons (the deceased person, his or her partner, the deceased person and his or her partner, the deceased person and other persons, or the deceased person’s partner and other persons).

      A stepparent is a person who has given the deceased the assistance and care referred to in the previous paragraph.

      Adopted child

      This is a child adopted under the system of full or simple adoption.

      Additional conditions apply to simple adoption: One of the following conditions must be met:

      • The adopted child must, up to the age of 21, for a continuous period of three years, have received the assistance and care that children normally receive from their parents from the adoptive parent or the adoptive parent and his or her partner.
      • The adopted child must be a child of the adoptive parent’s spouse.
      • At the time of the adoption, the child must have been the child of a father or mother who died in Belgium or must have been in the care of social services or a public social welfare centre or a comparable institution in the European Economic Area
      • The adopted child must have been adopted by a person whose descendants have all died for Belgium.
    • What are the rates between brothers and sisters?

      The rates apply to the individual share inherited by each heir, after deduction of any expenses and debts.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 12500 20 /
      12500.01 to 25000 25 2,500
      25000.01 to 50000 30 5,625
      50000.01 to 100000 40 13,125
      100000.01 to 175000 55 33,125
      175000.01 to 250000 60 74,375
      250,000.01 and more 65 119,375
    • What are the rates between uncles, aunts, nephews and nieces?

      The inheritance tax rates are calculated on the combined shares of all of these heirs. Each heir then pays an amount of tax proportionate to his or her share of the inheritance.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 50000 35 /
      50000.01 to 100000 50 17,500
      100000.01 to 175000 60 42,500
      175,000.01 and more 70 87,500
    • What are the rates between other persons?

      The inheritance tax rates are calculated on the combined shares of all of these heirs. Each heir then pays an amount of tax proportionate to his or her share of the inheritance.

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 50000 40 /
      50000.01 to 75000 55 20,000
      75000.01 to 175000 65 33,750
      175,000.01 and more 80 98,750
  • Reductions and exemptions in the Brussels Capital Region

    The reductions and exemptions apply both to the estate of residents of Belgium (inheritance tax) and to the estate of those who lived abroad (duty on the transfer of property mortis causa).

    • Spouses and legally cohabiting partners: exemption for the family home

      The spouse or legally cohabiting partner does not have to pay inheritance tax or duty on the transfer of property mortis causa on his or her net share of the property that was the family home at the time of the deceased person’s death.

      There is also an exemption for the last property used as a family home if the spouses or cohabiting partners are no longer living together at the time of death as a result of:

      • actual separation of the partners or
      • force majeure lasting until the time of death.

      Please note: this exemption does not apply if the legally cohabiting partner is:

      • a lineal blood relative (grandparent, parent, child, grandchild, etc.) of the deceased or a beneficiary treated as a lineal blood relative for the purposes of applying the rate;
      • a brother, sister, nephew, niece, uncle or aunt of the deceased.
      Application
      • If you were living with the deceased person at the time of his or her death, the exemption is normally applied automatically.
      • If you were no longer living together as a result of force majeure, you must apply for the exemption in the declaration of estate. In that case you must also provide proof of the force majeure.
    • Cohabitants and lineal relatives: reduced rate for the main residence

      A reduced rate can be applied to cohabitants or lineal heirs (children, grandchildren, parents, grandparents, etc.) if the estate includes a fully owned part of a building in which the deceased person had his or her main residence for at least five years.

      The preferential rate applies up to a maximum of 250,000 euros. The standard rate applies to any amount over this.

      Therefore, the following rates apply to that part of the main residence:

      Bracket (in euro) Rate (in %) Total tax on previous brackets (in euro)
      0.01 to 50000 2  /
      50000.01 to 100000 5.3 1,000
      100000.01 to 175000 6 3,650
      175000.01 to 250000 12 8,150
      250000.01 to 500000 24 17,150
      500,000.01 and more 30 77,150

      Notes:

      • You can prove that the building concerned was the main residence of the deceased with an extract from the population register or the foreign nationals register.
      • The preferential rate still applies if the deceased was unable to retain his or her main residence as a result of force majeure.

      Application

      • If you were living with the deceased person at the time of his or her death, the exemption is normally applied automatically.
      • If you were no longer living together as a result of force majeure, you must apply for the exemption in the declaration of estate. In that case you must also provide proof of the force majeure.
    • Spouses, cohabiting partners and lineal relatives: partial exemption from inheritance tax

      Tax-free allowance

      Spouses, cohabiting partners or lineal heirs do not have to pay inheritance tax on the first 15,000 euros of their inheritance. The reduction does not apply to the share received by a grandchild alone as legatee.

      Additional tax-free allowance for children under the age of 21

      Children of the deceased person who are under the age of 21 receive an additional exemption of 2,500 euros for each full year remaining until they are 21.

      In addition to this, the spouse or legal cohabitant receives half of the additional exemption paid to all of the common children together.

      Example of the tax-free allowance for a child under the age of 21

      Anna Peeters dies leaving her daughter Els as heir. Els is 17 years and 6 months old.

      After deducting funeral costs and Anna’s debts, the value of the estate is 30,000 euros.

      Els is entitled to the following exemptions:

      • a tax-free sum of 15,000 euros as a result of the common tax-free allowance
      • an additional tax-free sum of 2,500 euros x 3 (= full years until she is 21) = 7,500 euros.

      That is a total amount of 22,500 euros tax-free.

      The inheritance tax payable by Els is calculated as 7,500 euros (30,000 – 22,500 euros).

      Therefore, she must pay 225 euros of inheritance tax (7,500 euros x 3 %).

    • Heirs with at least three children under the age of 21: inheritance tax reduction

      Heirs with at least three living children under the age of 21 at the time of the deceased person's death receive a 2 % reduction in inheritance tax for each of those children, up to a maximum of 62 euros per child.

      The deceased person's partner receives a 4 % reduction for each child under 21, up to a maximum of 124 euros per child.

    • Property that is included in the estate of another deceased person within a year: 50 % inheritance tax reduction

      If the inherited property is included in the estate of one or more other deceased persons within a year of the deceased person’s death, the inheritance tax due on it is halved.

      However, the amount of the reduction must not exceed the inheritance tax levied on the previous estate.

    • Brothers, sisters, aunts, uncles, nephews, nieces and other persons: inheritance tax exemption for small estates

      If the estate is worth less than 1,250 euros, brothers, sisters, uncles, aunts, nephews, nieces or other heirs do not have to pay inheritance tax on their net share.

    • Testamentary gifts to authorities: inheritance tax exemptions and reductions

      There is an exemption from inheritance tax for legacies (testamentary gifts) to:

      • the Brussels Capital Region;
      • the Brussels agglomeration;
      • the Flemish, French and Common Community Commissions;
      • the French, Flemish and German-Speaking Communities and the Flemish and Walloon Regions;
      • legal entities governed by public law that are treated in the same way as these entities and were established under, and are subject to, the laws of another Member State of the European Economic Area;
      • a Member State of the European Economic Area;
      • the public institutions of one of these entities.

      The inheritance tax is reduced to 7 % for legacies to:

      • municipalities of the Brussels Capital Region and their public institutions;
      • companies recognised by the Brusselse Gewestelijke Huisvestingsmaatschappij | Société du Logement de la Région de Bruxelles-Capital [Brussels Regional Housing Advisory Company];
      • the Woningfonds van het Brussels Hoofdstedelijk Gewest | Fonds du Logement de la Région de Bruxelles-Capitale [Brussels Regional Housing Fund] a cooperative society with limited liability;
      • inter-communal associations of the Brussels Capital Region;
      • public-interest foundations;
      • not-for-profit organisations and other non-profit-making legal entities that have obtained the Federal recognition referred to in Article 145³³ of the Income Tax Code 1992 on the date of the deceased person's death or in the year following the death.

      The inheritance tax is reduced to 25 % for legacies to:

      • national and international not-for-profit organisations;
      • sickness insurance funds or their national federations;
      • professional associations;
      • private foundations.
    • Family businesses and companies: reduced rates

      The following reduced inheritance tax rate can be applied to family businesses and companies:

      • 3 % for married couples, cohabiting partners and lineal relatives;
      • 7 % for other persons.
      Type of property
      Family businesses

      The reduced rate applies to the net value of the full ownership, bare ownership or usufruct of the assets invested professionally in a family business by the deceased person or his or her partners.

      Please note: the reduction does not apply to immovable property that is primarily for residential use.

      Family companies

      The reduced rate applies to the net value of the full ownership, bare ownership or usufruct of shares in a family company with its effective centre of management in one of the Member States of the European Economic Area, on condition that, at the time of the deceased person’s death:

      • at least 50 % of the company’s shares were fully owned by the deceased person and his or her family,
      • or at least 30 % of the company's shares were fully owned by the deceased person and his or her family if they meet the following conditions:
        • that, together with one other shareholder and his or her family, they are full owners of at least 70 % of the company’s shares,
        • or that, together with two other shareholders and their families, they are full owners of at least 90 % of the company's shares.
        • Shares of legal entities cannot be combined with the deceased person’s shares.

      The company must be engaged in a genuine economic activity.

      The deceased person’s family or the shareholders include:

      • the partner of the deceased person or shareholder;
      • the lineal relatives of the deceased person or shareholder and their partners;
      • the collateral relatives of the deceased person or shareholder up to the second degree and their partners;
      • the children of brothers and sisters of the deceased person or shareholder.
      Conditions for retaining the reduction
      Family businesses

      The reduced rate is retained only if, for at least three continuous years from the date of the deceased person's death:

      • the economic activity of the family business continues without interruption;
      • the immovable property transferred, to which the reduction was applied, also continues to be used for the purposes of the business.
      Family companies

      The reduced rate is retained only if, for at least three continuous years from the date of the deceased person's death, all of the following conditions are met.

      • Activities: The family company continues to operate without interruption.
      • Annual financial statements: Annual financial statements or consolidated annual financial statements are prepared for each of the three years and, where appropriate, published in accordance with the accounting legislation of the Member State in which the company has its registered office at the time of the deceased person's death. The annual financial statements are used for the income tax declaration.
      • Capital: The capital does not fall as a result of distributions or repayments.
      • Effective centre of management: The company's effective centre of management is not transferred to a state outside the European Economic Area.
      Application

      Attach a certificate from the Brussels Capital Region, confirming that the conditions have been met, to the declaration of estate.

      By the 500th day after the date of death, send the office that dealt with the estate a certificate from the Brussels Capital Region confirming that the conditions were met for the first 365 days after the date of death.

      By the 865th day after the date of death, send the office that dealt with the estate a certificate from the Brussels Capital Region confirming that the conditions were met from the 366th to the 730th day after the date of death.

  • Payment of inheritance tax

    You have to pay the inheritance tax within two months of the deadline for filing the declaration of estate. Any late payment will also require you to pay legal interest of 7% per year.

    If you need more time, you can request an extension by sending a reasoned request to the competent office of the FPS Finance. In this way, you can be granted an extension of a maximum of five years from the date of death. However, please note: even if you are granted an extension, we may charge interest for late payment.

    You can also pay by donating works of art, but special rules apply to this.

    Flemish estate duties

    In Flanders, inheritance tax is called estate duties. You can find more information on Flemish estate duties on the website of the Flemish Tax Administration.